By Cynthia Gibson
Contributing Writer
INGLEWOOD — A Brookings Institute report published last January showed that between 2019 and 2022 the racial wealth gap between Blacks and whites increased by $49,950 — adding up to a total difference of $240,120 in wealth between the median white household and the median Black household.
City National Bank instituted its Ladder Up Home Loan Grant and Small Business program to address the wealth gap and increase access to wealth-building opportunities for low- and moderate-incomeindividuals, families and entrepreneurs in designated areas.
City National Bank is introducing its Ladder Up program to the public through a series of contracts, capital readiness and homeownership seminars. At the inaugural event, City National Bank executives outlined the benefits and qualification requirements for the Ladder Up programs, followed by information on acquiring corporate and government contracts.
City National Bank Vice President Brian Grant leads the bank’s Community Reinvestment Act Team, which develops opportunities that support the bank’s commitment to community development, small business lending, and financial literacy related projects.
“It’s our responsibility to ensure that CNB’s financial support leads to transformation in the communities we serve,” Grant said. “Our Ladder Up programs provide unprecedented assistance to access capital for underserved communities, entrepreneurs and business owners looking to buy a home or support business growth.”
The Small Business Ladder Up program is a special purpose credit program designed to help minority-owned, women-owned and those who identify as LGBTQ-owned companies. The company has to be represented by 50% ownership of the designated groups to be eligible for the program.
City National Bank Vice President Business Community Manager Jabari Grant outlined the importance of having a banking advisor to mitigate financial issues, cash management for small businesses and reviewed the qualifications for the Small Business Ladder Up Program.
“A year ago, a borrower may have needed a 720 [credit] score,” Grant said. “Now it’s a 660 score. A year ago, it was three years in business. Now it’s only two years in business.”
Historically, asset coverage was required for lines of credit up to $250,000. The Ladder Up Small Business Program requires no asset coverage.
Qualified business borrowers can receive up to $3 million for commercial real estate loans, debt and refinance loans or working capital loans.
Paul Marshall, community lending sales manager at City National Bank, provided a general overview of the bank’s community lending program for home grants. The grant for as much as $50,000 is available only in Los Angeles County and must be in a majority Black or Hispanic census tract.
The grant can be used for the down payment on owner-occupied one to four-unit properties, for closing costs or to buy down the interest rate. The program does not require mortgage insurance and loan fees are reduced.
Southern California Work and Business Center Director Kimberly Rolfe outlined capital readiness programs and capacity training for diverse suppliers that enable business owners to secure government contracts.
As a partner of City National Bank and founder of the Southern California Entrepreneur Ecosystem, Southern California Work and Business Center positions small business owners to qualify for capital.
Rolfe encouraged business owners to invest time in learning about developing and sustaining banking relationships that will lead to growth.
“You can’t show up and expect positive results if your business doesn’t have the appropriate financials, and is not generating revenue,” Rolfe said. “You’ve got to get it to the point where it meets the minimum qualifications. Programs like ours that help to get you on track.”
The wealth gap in America didn’t happen overnight and it will take a continued concerted effort to build generational wealth.
“We can continue to either continue to peel off the scabs of the past or we can continue to look forward to the healing,” Marshall said. “Let’s take advantage of the sins of the past and use them to benefit our community today,” said Marshall.
Upcoming contracts, capital readiness and homeownershipseminars are scheduled for San Pedro, Compton, Gardena and the Crenshaw District. For more details on the Ladder Up programs, visit www.cnb.com/ladder-up-program.
